Offsetting

Published 9:00 pm Tuesday, January 3, 2006

Business Standard reports from Mumbai http://www.business-standard.com/common/storypage.php?storyflag=y&leftnm=lmnu1&leftindx=1&lselect=1&chklogin=N&autono=210649 about the off-set agreements that enabled Boeing and Airbus to land deals with Air India and Indian Air.

Key Quote: “Counter trade and offsets by Airbus and engine manufacturer CFM International with the government is at 40 per cent. This will result in trade opportunities worth $145 million between India and France. The government has also secured a similar agreement on offsets at 30 per cent of the value of the aircraft with Boeing, which works out to approximately Rs 8,500 crore. Sources said the offset and counter trade clause would help Indian companies developed aircraft software solutions and avionics.”

I’m trying to get out of here tonight, so I haven’t worked out the conversions from crore rupees. Sorry.